The Trump administration is implementing a comprehensive overhaul of the U.S. foreign assistance framework, aiming to streamline operations and enhance strategic influence abroad.
According to internal memos circulating on social media, officials propose restructuring the United States Agency for International Development (USAID) by integrating its independent functions into the State Department. Under this plan, USAID would be rebranded as the U.S. Agency for International Humanitarian Assistance (IHA), aligning its mission more closely with American diplomatic objectives.
Key elements of the proposed overhaul include:
- Eliminating regional aid accounts: The foreign assistance funds designated for Europe, Eurasia, and Central Asia would be discontinued.
- Consolidating refugee and disaster relief efforts: The immigration and refugee assistance accounts would be merged with international disaster relief programs.
- Shifting authority over transition initiatives: The Transition Initiatives account, which supports political stability in fragile states, would be transferred to the State Department.
- Revoking congressional directives on the Economic Support Fund: This change would allow greater executive discretion in deploying economic aid.
Another major component of the reform involves merging three key agencies—the Millennium Challenge Corporation (MCC), the International Development Finance Corporation (DFC), and the Trade and Development Agency—into a single entity. The administration envisions this consolidated organization as a strategic counterweight to China’s Belt and Road Initiative, which Beijing has leveraged to expand its economic and diplomatic influence worldwide.
Additionally, the administration seeks to unify various politically oriented programs under a single directive. These programs include initiatives focused on promoting democracy, empowering women, combating human trafficking, and protecting religious freedom. Notably, the realignment underscores the importance of supporting the persecuted church and religious minorities worldwide.
“The realignment would acknowledge these programs as being diplomatic or political in nature, requiring direct command and control by the Secretary of State,” the memo states.
This restructuring effort underscores the Trump administration’s commitment to prioritizing U.S. strategic interests in its foreign assistance programs while ensuring greater efficiency and accountability in their implementation.